Race to the Bottom: Part 2

Are you tempted by promises of saving 15% or other catchy slogans from insurance companies? The allure of saving on insurance premiums is tempting, but before making a switch, it’s crucial to consider several key factors. Trust, coverage comparison, and advocacy are essential factors that must be carefully evaluated to ensure you’re making the right decision for your insurance needs. Before you jump ship, it’s crucial to ask yourself a few key questions:

• Can you trust your advisor? Consider this: if your insurance provider operates in a call center environment, can you truly rely on the advice they give? While saving money might seem like a top priority before a loss, your priorities can drastically change in the event of a significant claim. You wouldn’t want an unlicensed doctor performing your surgery, right? Similarly, relying on a call center that prioritizes cost-cutting over comprehensive coverage could leave you stranded during a claim.
• Do you really understand the coverage? We’ve seen it all when it comes to the tricks agents use to win business and meet sales quotas. From comparing short-term policy costs to long-term ones, to sneaky reductions in coverage limits, there are many ways coverage can differ. If you’re considering a company operating through a call center or with a captive agent, be aware: the contract is almost certainly more restrictive.
• Who will be your advocate? Home and auto insurance is distributed through different channels, including direct, captive, and independent agents. But here’s the question: do you have someone standing with you on your side of the fence? With direct or captive channels, anyone you speak with ultimately represents the insurance company. Only through an independent agent can you work with someone truly looking out for your best interests and sitting on your side of the fence!

In the end, you need to work with a team that can advocate for you and understand the insurance market and your specific needs. We understand the temptation to chase lower prices but remember: “you get what you pay for” rings truer than ever in today’s personal insurance marketplace. Avoid the race to the bottom, because we promise, there won’t be any winners in that race! Trust in a team dedicated to protecting what matters most to you.